And now EON have posted a loss - is the party over for the big 6?

[nottslad]

http://www.lbc.co.uk/eon-posts-7bn-loss-with-uk-profits-flat-126493

 

E.ON Posts €7bn Loss With UK Profits Flat

 

Wednesday, 9th March 2016 09:09

 

The parent company of 'big six' energy firm E.ON says annual losses more than doubled to ?7bn (£5.4bn) in 2015 - with UK profits flat despite supply business earnings falling 9% to £267

 

The German company blamed an ?8.8bn writedown in the value of its loss-making power generation assets for the group's net loss and said that the spin-off of its oil and gas-fired power activities from its renewable energy division, completed in January, would also hurt its outlook for 2016.

 

E.ON warned that "the course ahead will be tougher and longer than anticipated" given the changes to its business model and weak energy costs.

 

Germany's biggest energy firms, E.ON and RWE - which owns npower in the UK - have been forced to write off billions in the value of their conventional energy assets as the German government demands a shift to cleaner sources.

 

The cost of closing Germany's nuclear plants - a consequence of the accident at the Fukushima plant in Japan - has also pushed them into the red.

 

Following the release of the group's financial performance, E.ON later confirmed in greater detail how its UK business did.

 

It part-blamed a 3.5% cut to standard gas tariffs in January last year for 2015 annual supply business profits falling, alongside a competitive market.

 

It said overall UK profits were flat on last year as more renewable energy projects, such as the Humber Gateway wind farm, came on stream in its generation arm.

 

E.ON has not been alone in blaming fierce competition in the household supply business for hits to its profits.

 

The market is currently the subject of a Competition and Markets Authority probe which is expected to publish its remedies on Thursday.

[citizenB]

Related threads.

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?461096-Npower-incompetence-to-continue-through-2016

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?460991-Troubled-Energy-Firm-Npower-To-Axe-2-500-Jobs

[tobyjugg2]

7bn Loss With UK Profits Flat

 

So UK profits from the worst UK energy supplier are bolstering this German firm ....

 

and with French EDF (80% owned by French government) finance director resigning over the UK Nuclear Power station build as he thinks it will put them at financial risk despite the guaranteed price per KW being twice that of the current prices ...

 

What price selling off crucial UK infrastructure to foreign governments/companies??

[nottslad]

I wouldn't say EON were the worst, they won several awards last year for customer service, and in various league tables were the top of the big 6...

[Old Cogger]

who says their own so called regulator

[tobyjugg2]

Sorry - I mixed and matched incorrectly there

Npower are in my opinion the worst and have reported losses + 2400 job losses also owned by a german company

 

Eon as above - German

 

EDF - French

 

Scottish Power - Spanish

 

Sorry about it being the mirror - but it says well what has been happening for years with these parent companies protecting their home markets at the expense of the UK (and British Gas following suit through greed)

 

http://www.mirror.co.uk/news/uk-news/foreign-owned-energy-firms-hit-uk-86677

[nottslad]

@old cogger - the awards and tables I was referring to were for example USwitch, Which, CAB, so a cross section of consumer bodies.

 

@toby EON in the UK actually made a profit, with losses being made in their other European markets.

[tobyjugg2]

@toby EON in the UK actually made a profit, with losses being made in their other European markets.

 

yes I was referring to Npower but failed to clarify it.

[E.ON Company Rep: Malc]

http://www.lbc.co.uk/eon-posts-7bn-loss-with-uk-profits-flat-126493

 

E.ON Posts €7bn Loss With UK Profits Flat

 

Wednesday, 9th March 2016 09:09

 

The parent company of 'big six' energy firm E.ON says annual losses more than doubled to ?7bn (£5.4bn) in 2015 - with UK profits flat despite supply business earnings falling 9% to £267

 

The German company blamed an ?8.8bn writedown in the value of its loss-making power generation assets for the group's net loss and said that the spin-off of its oil and gas-fired power activities from its renewable energy division, completed in January, would also hurt its outlook for 2016.

 

E.ON warned that "the course ahead will be tougher and longer than anticipated" given the changes to its business model and weak energy costs.

 

Germany's biggest energy firms, E.ON and RWE - which owns npower in the UK - have been forced to write off billions in the value of their conventional energy assets as the German government demands a shift to cleaner sources.

 

The cost of closing Germany's nuclear plants - a consequence of the accident at the Fukushima plant in Japan - has also pushed them into the red.

 

Following the release of the group's financial performance, E.ON later confirmed in greater detail how its UK business did.

 

It part-blamed a 3.5% cut to standard gas tariffs in January last year for 2015 annual supply business profits falling, alongside a competitive market.

 

It said overall UK profits were flat on last year as more renewable energy projects, such as the Humber Gateway wind farm, came on stream in its generation arm.

 

E.ON has not been alone in blaming fierce competition in the household supply business for hits to its profits.

 

The market is currently the subject of a Competition and Markets Authority probe which is expected to publish its remedies on Thursday.

 

So UK profits from the worst UK energy supplier are bolstering this German firm ....

 

and with French EDF (80% owned by French government) finance director resigning over the UK Nuclear Power station build as he thinks it will put them at financial risk despite the guaranteed price per KW being twice that of the current prices ...

 

What price selling off crucial UK infrastructure to foreign governments/companies??

 

Related threads.

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?461096-Npower-incompetence-to-continue-through-2016

 

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?460991-Troubled-Energy-Firm-Npower-To-Axe-2-500-Jobs

 

Hi All

 

Just following on, if it's of interest, we issued a press release about this announcement on Wednesday. It's at the link below.

 

http://pressreleases.eon-uk.com/blogs/eonukpressreleases/archive/2016/03/09/2504.aspx

 

Hope it's of interest.

 

Malc

[nottslad]

Interesting times to come Malc, I dare say if RWE put NPower up for sale EON would have once been in a position to buy it (I remember when we took on TXU for instance)

 

It'll be interesting to see what impact spinning off generation in to a new company will have, particularly on jobs

[tobyjugg2]

So how are these EDF EPR nuclear reactor builds going on where they have already started:

 

Somewhat biased in presentation but factual none the less

http://www.beyondnuclear.org/epr-reactor/

[nottslad]

EDF are yet to make a final decision on whether to invest in Hinkley point, and I believe one of their directors has stepped down?

 

In my opinion carbon capture and storage should be looked at again - using the coal fired plants that are still in use today or have only recently been moth-balled

[E.ON Company Rep: Malc]

That's true nottslad. Very interesting times indeed. Watch this space as they say.

 

Have a good weekend.

 

Malc

[tobyjugg2]

EDF are yet to make a final decision on whether to invest in Hinkley point, and I believe one of their directors has stepped down?

 

In my opinion carbon capture and storage should be looked at again - using the coal fired plants that are still in use today or have only recently been moth-balled

 

 

Yes given that every other EPR build in progress is massively over time and over budget.

 

Even the large uplift in guaranteed payments per MW weren't enough to convince the FD it was worthwhile - quite the opposite.

 

The real risk to EDF which the FD may have seen in these builds is that the governments (via tax payers money) involved wont pick up the massive overspends as EDF + partners perhaps 'expected'

 

 

http://www.beyondnuclear.org/epr-reactor/

[tobyjugg2]

Although might be considered from a biased perspective, the facts regarding EPR builds in the following link seem quite clearly damning

 

http://www.theecologist.org/News/news_analysis/2859924/finland_cancels_olkiluoto_4_nuclear_reactor_is_the_epr_finished.html